Consolidated financial results for the first quarter of fiscal year ending March 31, 2011

Transcription

1 GLORY LTD. for the first quarter of fiscal year ending March 31, Financial forecast for FY2010 1)Overview P.3 2)Changing factors of net sales P.4 3)Changing factors of operating P.5 4)Net sales & operating by business segment P.6 5)Net sales & operating compared with target P.12 6)Net sales by geographical segment P.13 7)Capital expenditures and others P.14 8)Analysis of statements P.15 1)Financial forecast for FY2010 P.16 2)Projected net sales by business segment P.17 3 Other information 1)Capital investment P.18 This document may contain forecasts for future business which reflect management s current views with respect to certain future events and financial performances. Actual results may differ materially from those projected or implied in the forecasts and from historical trends. Further, certain forecasts are based upon assumptions of future events which may not prove to be accurate. So please avoid making investment decision relying only on this document. And please note that we may change the contents of the forecasts without advance notice except that we need legal procedures. 1

2 Change of classification of business segments 1 To switch vending machine into others 2 To switch some customers of others & some products of vending machines to suitable s 3 To summarize some customers Markets ~FY2009 Customers Main products Markets FY2010~ Customers 3 Financial Financial institutions, life and non-life insurance companies, securities firms, computer manufacturers, etc Open teller systems, banknote and coin recyclers for tellers, etc. Financial Domestic financial institutions, Japan Post Bank, OEM clients, etc. Retail & transportation Department stores, supers, specialty stores, C.I.T.s, railroad companies, etc. Coin and banknote recyclers, sales proceeds deposit machines, etc. 2 Retail & transportation Domestic supers, department stores, C.I.T.s, railway companies, etc. Amusement Overseas Pachinko parlors and other amusement establishments Overseas financial institutions, C.I.T.s, casinos, computer manufacturers, etc. Prepaid card systems, premium dispensing machines, banknote conveyor systems, etc. Banknote recyclers for tellers, banknote sorters, banknote deposit modules for ATMs, etc. 2 Amusement Overseas Domestic amusement halls (pachinko parlors, etc.) Financial institutions abroad, C.I.T.s, casinos, OEM clients, etc. Other s Vending machine Government offices, hospitals, leisure facilities, general companies consumer finance companies, etc. Tobacco companies, tobacco kiosks, railway companies, etc. Ballot sorters for handwritten ballots, medical payment kiosks for hospitals, RFID self-checkout systems for cafeterias, etc. Cigarette vending machines, ticket vending machines, coin-operated lockers, etc. 1 Others Vending machine Hospitals, government offices, companies, etc. Tobacco kiosks in Japan, and tobacco companies, etc. 2

3 Overview of compared with previous fiscal year Net sales Income Although sales of products in amusement were sluggish, sales in overseas, financial, retail and transportation are favorable. Total sales have increased compared to the same period last year. Income has increased compared to the same period last year due to the increase of sales, reduction of cost by expanding overseas production and procurement and other positive measures. FY2009 Q1 Year-on-year comparison Net sales 28,970 30, % maintenance services 7,857 (27.1%) 7,879 (26.0%) +0.3% Operating 760 (2.6%) 1,123 (3.7%) +47.8% Ordinary 1,584 (5.5%) 1,160 (3.8%) % Net 712 (2.5%) 456 (1.5%) % 3

4 Changing factors of net sales Overseas Amusement Others -191 Financial Retail& transportation , ,339 ~28,970 FY2009 Q1 (results) ~ (results) 4

5 Changing factors of operating Effect of reduction of cost ratio Selling & general administrative expenses Increase of sales , FY2009 Q1 (results) (results) 5

6 Net sales & operating by business segment Business segments FY2009 Q1 Net sales Year-on-year comparison Operating Financial 7,958 8, ( +8.5%) 417 Retail & transportation Amusement 5,680 6,448 Overseas 6,376 7,235 6, ( +5.7%) 486 6, ( -4.7%) ( +13.5%) 393 Others Vending machine Total 2,508 1,706 28,970 2, ( -7.6%) , (- 35.7%) ,339 +1,369(+ 4.7%) 1,123 Net sales by segment 30,339 Operating by segment 1,123 1,369 28,970 FY2009 Q1 (results) (results) (results) 6

7 Financial Favorable selling of main products Sales of open teller systems, our main products, have been favorable, and OEM banknote and coin recyclers for tellers have also been favorable due to replacement demand. Net sales 8,634 Year-on-year comparison Ratio to total sales +676 (+8.5%) 28.5% (+1.0%) 7,958 FY09 Q1 8,634 FY10 Q1 Sales of main products (Year-on-year comparison) Open teller system WAVE series Banknote and coin recycler Change by quarterly term 16,000 14,495 11,684 11,366 11,000 7,958 8,622 8,634 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2009 FY2010 Operating 417 FY2010 1,824 Open teller system WAVECseries Auto cash cabinet BW series Ratio to total 37.1% Q1 Q2 Q3 Q4 Inclination of an arrow indicates fluctuation of sales compared to the same period last year 7

8 Retail and transportation Favorable selling of main products Sales of coin and banknote recyclers for cashiers, our main products, have been favorable, and replacement demand for sales proceeds deposit machines has grown. Net sales 6,005 Year-on-year comparison Ratio to total sales +325 (+5.7%) 19.8% (+0.2%) 5,680 FY09 Q1 6,005 FY10 Q1 Sales of main products (Year-on-year comparison) Coin and banknote recycler for cashiers RT/RAD series Sales deposit machine DS/DSS series Change by quarterly term 8,000 7,083 7,184 6,995 7,000 6,187 5,680 6,005 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2009 FY2010 Operating 486 FY Cash recycler RH series Multi-functional cash management station DSR series Ratio to total operating 43.3% Q1 Q2 Q3 Q4 Inclination of an arrow indicates fluctuation of sales compared to the same period last year 8

9 Amusement Sales of card systems are sluggish Sales of pachinko ball counters, our new products, have been favorable, while restrained capital expenses for prepaid card systems has kept the sales sluggish. Net sales 6,147 Year-on-year comparison (- 4.7%) 6,448 FY09 Q1 6,147 FY10 Q1 Ratio to total sales 20.3% (- 2.0%) Sales of main products (Year-on-year comparison) Pachinko ball counters JCT series Token dispenser JMM series Change by quarterly term 8,725 8,000 7,371 6,448 6,147 5,853 6,000 4,190 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2009 FY2010 Operating 102 FY Premium management machine JK series Banknote conveyor system Ratio to total 9.1% Q1 Q2 Q3 Q4 Inclination of an arrow indicates fluctuation of sales compared to the same period last year 9

10 Overseas Sales in China is brisk Sales of OEM banknote deposit modules for ATMs have been favorable, in addition, sales of banknote sorters have increased due to the expansion of sales network especially in China. Net sales 7,235 Year-on-year comparison Ratio to total sales +895 (+13.5%) 23.8% (+1.8%) 6,376 FY09 Q1 7,235 FY10 Q1 Sales of main products (Year-on-year comparison) Banknote deposit module UD series Banknote sorter UW/USF series Banknote recycler RZ series Banknote counter GFS series Change by quarterly term Operating 393 Ratio to total 6,376 6,686 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2009 FY % 6,083 9,567 FY , , ,500 8, Q1 Q2 Q3 Q4 Inclination of an arrow indicates fluctuation of sales compared to the same period last year 10

11 Others Sales of cigarette vending machines are sluggish Sales of OEM banknote recycling units for horse race ticket vending machines have been favorable, while sales of cigarette vending machines have been sluggish. Net sales 2,317 Year-on-year comparison (- 7.6%) 2,508 FY09 Q1 2,317 FY10 Q1 Ratio to total sales 7.6% (- 1.1%) Sales of main products (Year-on-year comparison) Ballot sorter for handwritten ballots GTS series Cigarette vending machine TNR series Change by quarterly term 2,508 2,525 2,384 Operating ,349 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2009 FY2010 FY2010 2,317 2,683 3,500 3, Ticket vending machine VT series Ratio to total % Q1 Q2 Q3 Q4-276 Inclination of an arrow indicates fluctuation of sales compared to the same period last year 11

12 Net sales & operating compared with target 40,000 30,000 30,,000 30,339 Net sales by business segment (comparison with target) 20,000 10,000 0 FY10 Q1(target) FY10 Q1 (results) Business segments Sales (target) Sales (results) Difference Operating Financial 9,000 8, ( -4.1%) 417 Retail & transportation 6,500 6, ( -7.6%) 486 Amusement 5,000 6,147 +1,147(+22.9%) 102 Overseas 7,500 7, ( -3.5%) 393 Others 2,000 2, ( +16.9%) -276 Vending machine 1,000 1, ( +9.7%) -294 Total 30,000 30, (+ 1.1%) 1,123 12

13 Net sales by geographical segment Net sales by geographical segment (overseas) FY2009 Q1 Year-on-year comparison Americas 1, % 1, % % from OEM % % % Europe 3, % 4, % % from OEM 1, % 2, % +1, % Asia % 1, % % from China % % % from OEM % % % Total 6, % 7, % % from OEM 2, % 3, % % Percentage indicates ratio to total sales. 13

14 Capital expenditures and others (millions of yen) FY2009 Q1 Year-on-year comparison Change by quarterly term 1,703 1,688 2,444 Capital expenditures % 1,703 1, ,688 1,612 1,600 1,600 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2009 FY2010 Depreciation & amortization 1,829 1, % 1,829 2,022 2,088 2,205 1,598 1,902 2,250 2,250 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2009 FY2010 R&D expenses 2,032 1, % 2,032 2,278 2,006 2,459 1,901 2,599 2,250 2,250 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY2009 FY

15 Analysis of Income statements FY2009 Q1 Percent (%) Percent (%) Increase/ Decrease Net sales 28, , ,369 Cost of sales 18, , SG&A costs 9, , Operating , Non-operating Non-operating expenses Ordinary 1, , Extraordinary Extraordinary loss Income before taxes 1, Adjustment of tax Net Ratio of sales cost :Decrease by 0.4 percent due to efforts to reduce cost 2Non-operating expenses : Foreign exchange losses( 405million), etc. Insurance return ( 406 million) was posted to non-operating in the same period last year. 3Extraordinary loss : Retirement benefit expenses loss ( 257million), etc. Result from shifting simplified accounting method of lump sum payment adopted by former Harima GLORY Ltd., and former GLORY TEC Ltd. to ordinary accounting method. 15

16 2 Financial forecast for FY2010 Financial forecast for FY2010 Full year Net sales Income Net sales will increase compared to the same period last year due to developing s more due to launching new products. Income will increase compared to the same period last year due to increasing sales and promoting reducing costs. (results) -Q2 (forecast) Full year (forecast) Net sales 30,339 65, ,000 maintenance services 7,879 (26.0%) 16,000 (24.2%) 32,000 (22.1%) Operating 1,123 (3.7%) 3,000 (4.6%) 10,000 (6.9%) Ordinary 1,160 (3.8%) 3,000 (5.8%) 10,000 (6.9%) Net 456 (1.5%) 2,000 (3.5%) 6,000 (4.1%) (Notes) Foreign exchange rate: Q1 85 to 1 U.S. dollar, 130 to 1 Euro Q2 85 to 1 U.S. dollar, 110 to 1 Euro 16

17 2 Financial forecast for FY2010 Projected net sales by business segment Q1 (results) FY2010 Q1-Q2 (forecast) Full year (forecast) Financial 8, % 20, % 47, % Retail & transportation 6, % 13, % 28, % Amusement 6, % 12, % 26, % Overseas 7, % 15, % 32, % Others 2, % 5, % 12, % Vending machine 1, % 2, % 6, % Total 30, % 65, % 145, % Percentage indicate ratio to total sales. 17

18 3 Other information Capital investment To build the second plant of GLORY(PHILIPPINES),INC. 1To meet increase of production in line with expanding sales (mainly OEM products) 2To contribute to cost reduction by handling production on consignment as a group company Start August, 2010 Productive capacity Erection capacity : about twice (Double the space for production) Completion March, 2011(planned) Architect s conception of the completed plant GLORY(PHILIPPINES), INC. Net sales : 1,716 million (non-consolidated) No. of employees : 409 (As of March 31, 2010) 18